Retail giants Shein and Temu are rapidly adjusting their global marketing strategies, cutting digital advertising in the United States while significantly boosting spend in key European markets, as they brace for new U.S. trade regulations that threaten their low-cost import models.
According to Reuters, citing data from Sensor Tower, both e-commerce platforms slashed U.S. ad budgets in early April—Temu by 31% and Shein by 19%—ahead of the U.S. government’s move to terminate the de minimis tariff exemption on May 2. The policy had previously allowed duty-free entry for low-value imports, a critical advantage for platforms that ship inexpensive products like beauty and personal care items directly from overseas.
In contrast, both companies ramped up digital advertising in Europe, particularly in the UK and France. Shein increased April ad spend by 35% in both markets, while Temu raised spending by 40% in France and 20% in the UK compared to the previous month. Year-over-year, Temu’s ad investment surged 115% in France and 20% in the UK, while Shein posted increases of 45% and 100%, respectively.
Brazil also emerged as a growing focus, with both companies increasing marketing efforts there. Shein benefits from local manufacturing in Brazil, and Temu is preparing for a major market entry.
The reallocation of advertising budgets signals a strategic pivot in response to rising costs and regulatory pressure in the U.S. For businesses like Shein and Temu, which rely heavily on cross-border shipping of low-priced goods, the loss of the de minimis loophole adds a new layer of complexity and cost. By shifting promotional efforts to Europe and Latin America—regions currently more favorable to their logistics and pricing models—the platforms are working to sustain growth while mitigating risk in a tightening U.S. trade environment.
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